In Oregon the challenges of funding infrastructure are pretty similar to what we're seeing across the rest of the country. They're looking to close the funding gaps caused by a rise in fuel efficiency and a decline in gas tax revenue.

So, they're testing, for now, a new system that replaces the state's gasoline tax with a tax per mile driven.

About 40 volunteers from around the state began testing the next generation of a “road usage charge” system last month. Instead of paying the gas tax (automatically added at the pump), pilot participants will pay a “per mile” charge based on the number of miles they drive. The charge is roughly equal to the amount of gas tax they would have paid for a vehicle that gets 20 miles to the gallon; most participants will be refunded gas taxes paid during the pilot. Participants have a choice of five different plans involving a range of technologies and methods for reporting and paying. Drivers choose the way miles are reported with in-vehicle technology – some without GPS capability and others able to use it-- or could opt out of in-vehicle technology altogether by paying a flat annual charge in lieu of a per-miles-traveled basis. For the pilot, ODOT contracted with a private company, Sanef, to process payments as an alternative to ODOT and provide mileage reporting devices.

For pilot participants paying by the mile, a mileage reporting device plugged into a diagnostic port, located under the dashboard, reports the distance traveled. The reporting device only reports the number of miles driven, not where they are driven. The device wirelessly reports the miles driven to ODOT or Sanef, depending on the plan; ODOT or Sanef provides a monthly bill to participants based on their reported road use. The pilot includes three mileage reporting device choices: The Basic mileage reporting device reports the total number of miles driven only. This device does not include GPS and does not report the location of miles driven. A Smartphone application and basic mileage reporting device uses the basic device to report the total miles driven and a participant can activate an app on an Android Smartphone to determine which miles are driven outside of Oregon, for which drivers are not charged. If the app is not turned on, only the total miles driven are reported.The Advanced mileage reporting device reports the total number of miles driven and uses GPS to determine which miles are driven outside of Oregon, for which drivers are not charged.

ODOT's Randall Thomas, senior project manager for the road usage charge, reports that the DOT is expected to announce results of the pilot program after several months. He noted that following review, the legislature will make determinations identifying vehicles that will be subject to the charge; and, the rate they will be required to pay.

The citizens of Oregon have a chance to vote out their state representatives if they don't like the plan. I can only assume that the majority of Oregonians like the plan. Another point: does the state drop the sales tax on gasoline if they implement the miles tax?

Well, as for out-of-state drivers, they pay taxes to the state as well, in the form of hotel taxes and sales tax based on money spent. Visitors may not be paying in the same form as residents of Oregon, but paying and helping in a smaller percentage according to the time spent in the state.

The per-mile system works with alternate energy vehicles that don't get their 'fuel' from a pump where the tax is added to the cost of the fuel. The flat charge may work on old vehicles without an OBD2 port. It gets around the odometer reading question of accuracy. It addresses concerns of tracking with GPS. With a small tweak to the OBD2 module, reading the mileage may be a feature that could be include in a vehicle inspection system. I have an annual emissions inspection in which my mileage is recorded.

Old news but as I said before, they've got to do what they've got to do to get the money they need. But, as someone said the other day re this, hope they really DO use the money for roads and infrastructure and not for other things as they often do.

But if you live in Oregon and drive to several other states on a regular basis you are paying twice. In Oregon for the miles you totally drive and in other states by paying at the pump. If all states did it how would the collect the taxes for the other states you drove in.

Old news but worth paying attention to. States taking the place of Big Brother in Washington! Federal taxes going up,states raising and conjuring up new consumption taxes.What are they headed toward, keeping our income and doling us out a bit at a time like Public Assistance? The President has already said, and believes, that the Federal Govt. can take care of us all(re: 1984)!